Google profits are up, but two-thirds are yet to be realized. Debt is building, $500 billion in outstanding Al Data center debt. China’s Deep Seek means Western Al must compete. As Michael Roberts writes:
“The AI bet rests on two big assumptions. The first is that AI will be profitable – eventually. But just because a technology leads to a huge increase in productivity doesn’t mean it will generate strong returns. The second assumption is that there will be widespread demand for AI, and soon. AI adoption has risen, but it is still a long way from peak adoption. As above, Goldman Sachs estimates that it could take as long as 15 years; the OECD says 20 years. Can the current AI companies survive that long; can the stock market wait that long before the bubble bursts?”
~ Quote from Michael Roberts
Read more in Michael Roberts Blog
